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Agenda Item: 7(c) |
Prepared By: Jeffrey E. Poteet, General Manager |
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Business: Consent Agenda Item |
Department: Water and Sewer |
Subject:
Title
Authorize the City Manager to Enter into a 10-Year Professional Service Agreement with Ferguson Enterprises, LLC d/b/a Ferguson Waterworks for Neptune Network-as-a-Service (NaaS) Solution at an Average Annual cost of $74,000 - Jeffrey E, Poteet, General Manager, Water and Sewer Department
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BACKGROUND:
On July 2, 2025, the City Council awarded a Contract to Johnson Controls to implement Advanced Meeting Infrastructure Citywide. Per contract all existing water meters citywide will be replaced with state-of the art ultrasonic smart meters equipped with LoRa WAN communication endpoints. Each new meter will be paired with an AMI endpoint which communicates via a low-power, long-range wireless network. The AMI network service will be deployed to collect usage data from the new meters remotely. Meters will record water consumption on an hourly basis and transmit the data wirelessly to the utility every 3 hours.
Per Johnson Controls Contract Section XI - AMI System Installation: The first year AMI network services installation fees will be fully covered by Johnson Controls. Therefore, Year 2 to Year 10 network as-a-service fees will be paid by the City. The City will subscribe to Neptune Network Services for the duration of the AMI contract. Ferguson Water Works Inc. is the sole authorized Neptune Distributor in the State of Florida. The Ferguson Professional Services Agreement includes the annual subscription to Ferguson/Neptune/Senet for the Network-as-a-Service (NaaS). The continuation of this contract from year 2 to year 10 is essential to prevent interruptions in water consumption data collection and the billing system, ensuring a satisfactory level of service for the City’s customers.
This project will provide network services for 11,297 meters at a cost of $5.64 per meter, with a 4% annual escalation beginning in Year 3. At the end of Year 1 and entering Year 2, the City’s financial obligation will be $63,715.08. A detailed annual payment schedule for the ten-year term is included in Ferguson’s agreement.
Staff seek City Council’s approval to utilize non-competitive procurement as defined in the City Code of Ordinances, Article V. Division 2, Section 2-255 (c) to accomplish this upgrade in accordance with the following ordinance criteria:
• Section 2-255 (c)(5): Maintenance and servicing of equipment by the manufacturer or authorized service agent of the equipment.
• Section 2-255(c) (6): Telecommunications systems and information technology, including data processing equipment, system software, and reproduction equipment.
• Section 2-255 (c)(7): Where complete systems or equipment, parts, or replacements of specified makers and models are needed for interoperability, compatibility, or standardization purposes.
FUNDING SOURCE / FISCAL IMPACT:
The updated cost of the AMI network service fee has been included in the Operating Budget for FY 2026 (Fund 400).
RECOMMENDATION:
Authorize the City Manager to enter into a 10-year Professional Service Agreement with Ferguson Enterprises, LLC d/b/a Ferguson Waterworks for Neptune Network-as-a-Service (NaaS) Solution.
POTENTIAL MOTION:
“I move to Authorize the City Manager to enter into a 10-year Professional Service Agreement with Ferguson Enterprises, LLC d/b/a Ferguson Waterworks for Neptune Network-as-a-Service (NaaS) Solution”